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If I change my Health Savings Account (HSA) contribution, how do I calculate how much will be deducted from each paycheck?
When you update your Health Savings Account (HSA) contribution mid plan year, we ask you to enter an annual amount. You can use this calculation to figure out how much money will be deducted from each paycheck.
1. Calculate the total amount you'll have contributed this plan year up until your change comes into effect. Remember, your contribution amount doesn't update right away. You'll need to include money contributed after you submitted your change but before it came into effect.
Example: Imagine you chose to contribute $1200 during open enrollment, and your plan year started January 1st. You get paid twice a month, so your current contribution per pay period is $50 ($1200 / 24 pay periods in the plan year).
On March 5th you change your contribution amount to $2400 and submit this change to League. Your per pay period contribution is still $50 until it updates on the first pay period in April. Once your contribution amount updates, you've already contributed $300 ($50 x 6 pay periods).
2. Subtract this total amount from your new contribution amount.
Example: If you've contributed $300 so far and changed your contribution amount to $2400, the calculation would be: $2400 - $300 = $2100.
3. Calculate the number of pay periods remaining in your plan year, from the month your change comes into effect.
The amount of pay periods remaining will depend on:
Your employer's pay schedule
The date your benefits plan year ends
The date your changes come into effect
Example: Your plan year started on January 1st and ends December 31st. You get paid twice a month. You change your contribution amount on March 5th, and the amount is updated for the first pay period in April. From April 1st to December 31st, there are 18 pay periods remaining.
4. Divide the amount you calculated in step 2 by the number of remaining pay periods.
Example: $2100 / 18 pay periods = $116.67
For this example, the contribution per pay period will be $116.67.